thanks guys, I had posted the last remark before michigan lady's post was read. I took tons of pictures and video taped the work being done. Thank you, I did not know about the Registrar of Contractors, I will be contacting them.
That may make you feel better, but it won't get you your money back.
And if you decide to forego a lawyer and sue in small claims court, the most you will be able to recover is $5,000. Since it appears that you paid $48,000 for work done to date (which would apparently pay for the work actually completed), you should be able to recover the $9,000 you paid him after he stopped working, the $6,500 you guys paid to finish the job, and the $4,500 you'll need to pay the AC guy, or about $20,000. If your cousin were to sue you for the work he did (or otherwise demand payment), you could probably recover that $2,700 as well. If the $48,000 was for not only the work actually completed, but also to cover work that had yet to be completed, you should be able to recover that portion of the $48,000 that was meant for work not yet completed.
The point being that even if you had to pay a lawyer 40% or your recovery of $20,000, you would still end up with $12,000, which is more than the $5,000 you would get in small claims court, and more than the $0 you will get from filing with the Contractor's Board. You could also try and file a case in superior court on your own -- you can go to your local library and see what books on filing your own suit are available.
But without going to court, you are unlikely to see any of your money back.
To top it all off the AC guy wants us to pay him for the work he has done ($4500) Which is in the scope of our contractors job. I did not call the ac guy the contractor subbed out those types of jobs and he called the AC man and signed his contract with him.
The problem here is that the AC guy apparently DID do the work, and you benefitted from it -- so he has the right to go after you for payment. If you don't pay him, he will be able to sue you, and (if he has a license) put a lien on your property. Of course, if you pay him, you have the right to go after the contractor for reimbursement -- but the AC contractor will not be left holding the bag for the contractor's default, especially when you are enjoying the benefit of his labor.
Why don't you at least contact a couple of lawyers in your area and see if they can take the case on contingency? You might be able to get someone to work with you. Otherwise, take a look at filing a case yourself. You'll need to sue the guy to see any of your money again.
And pay the AC guy -- you don't want a judgment or a lien on your credit report if you can help it.